MALAYSIA continues to be an attractive destination for those who wish to adopt this country as their second home under the Malaysia My Second Home (MM2H) programme, despite its revised strict terms and conditions, Home Minister Saifuddin Nasution Ismail said. 

Saifuddin admitted that there was a drop in the number of new MM2H applications but denied it had reached 90% as reported previously. 

“Yes, there is a decrease in terms of applications and approvals, but not up to 90%. 

“The decrease, if I compare the 2019 data, for example, there were around 3,900 applicants but a year after these new conditions were imposed, the number of applications was approximately 2,000. 

“So, there is a reduction of around 50% because we tightened the conditions,” he said in Dewan Rakyat today during the Ministers’ Questions and Answer session. 

Saifuddin was responding to a question from Hasni Mohammad (Simpang Renggam-BN), who asked the home minister to state the rationale for the latest changes made to the MM2H programme. 

Hasni claimed that the programme’s rigid terms has caused the real estate market in Johor to turn gloomy, adding that the number of overhang property in the state is becoming a concern. 

Saifuddin said despite the reduced number of applicants, revenue derived from the MM2H programme for 2022 is reaching RM1 billion. 

“Let’s compare the figures of this programme from 2015 to 2019. The total income the government received between 2015 and 2019 is RM958 million – in five years. 

“But since we tightened the conditions to get quality applicants, within a year alone the income is almost reaching RM1 billion. 

“Right now, we have approved 375 out of 2,000 applications. That means RM375 million is already in the country’s coffers.

“But in the meantime, we have already given pre-approval to some 800 applicants as there are a couple of documents pending from them before they are given full approval.

“If this is approved, RM800 million will be in the central bank account, meaning the total revenue for one year since the regulations were tightened will reach almost RM1 billion,” Saifuddin said. 

It was previously reported that the MM2H programme has seen a 90% drop in the number of applicants because of tougher conditions imposed. 

Reports said those looking for adopted homes were opting for neighbouring countries, no thanks to the strict conditions imposed by the previous administration in 2021.

The new conditions imposed required applicants to have permanent savings of at least RM1 million and liquid assets of at least RM1.5 million.  

Previously, they only needed savings of between RM300,000 and RM500,000. 

They must now also show an offshore income of at least RM40,000 a month.

The MM2H programme, which promotes Malaysia as an international retirement destination, was frozen in 2020 and resumed in 2021 with stricter conditions.

Perikatan Nasional’s Hamzah Zainuddin was the home minister at the time. – June 7, 2023.